Kip Tips

The IRS Wants to Know If You Pick a Derby Winner

Cameron Huddleston

Or if you have gambling winnings of any kind.

If you're off to the races this weekend -- or just betting on the Kentucky Derby from afar -- Uncle Sam wants to know if you pick the winning horse. Come tax time, you'll have to report your gambling winnings on Form 1040.

All winnings from lotteries, raffles, casinos and, yes, horse races are taxable. The fair market value of prizes, such as cars, also must be reported.

You also can deduct gambling losses up to the extent of winnings you report as taxable income. You must itemize to use this write-off, but the deduction is not subject the rule that trims miscellaneous expenses by 2% of your adjusted gross income. To deduct losses, you also must have receipts or records that show the amount of your winnings and losses.

Get Kip Tips by e-mail for FREE. Registered users on can sign up to receive more than 20 valuable updates. Register Now »

Editor's Picks From Kiplinger

More Sponsored Links


Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit any posted comments for clarity, appropriateness, civility, and relevance to the topic.
View our full privacy policy


Market Update


Featured Videos From Kiplinger